Module 6 Flashcards
Regional _____ integration creates agreements among countries in a specific geographic area in order to reduce and eventually remove tariff and nontariff barriers to the free flow of goods.
Multiple choice question.
social
economic
financial
political
economic
What are three forms of economic integration?
Multiple select question.
Planned economy
Free trade area
Common market
Military alliance
Full political union
Free trade area
Common market
Full political union
Economic theories advocate for
________________________
trade and investment that will allow participating countries to gain economically. (Choose free or restricted.)
free
Which two political factors support the idea for economic integration of nations through trade?
Multiple select question.
It promotes independent political power.
Interdependency among nations decreases the potential for violent conflict.
It can enhance the political weight of those countries in the world.
It provides an incentive to use military action to achieve objectives.
Interdependency among nations decreases the potential for violent conflict.
It can enhance the political weight of those countries in the world.
What are two impediments to establishing economic integration?
Multiple select question.
Global benefits of free trade
Potential to increase violent conflict
Costs of integration
Concerns over national sovereignty
Costs of integration
Concerns over national sovereignty
There has been a(n) _____ in regional economic integration in the past two decades.
Multiple choice question.
decline
pause
increase
increase
An argument against regional free trade agreements contends that the benefits have been oversold, but ______ have often been ignored.
Multiple choice question.
costs
monetary policy
values
behaviors
costs
What is the least integrated form of economic integration?
Multiple choice question.
Customs union
Free trade area
Common market
Economic union
Free trade area
Because of its economic and political influence, the _____ is considered the most significant trading bloc in Europe.
Multiple choice question.
European Parliament
European Union
European Council
European Free Trade Association
European Union
Based on economic theories, free trade is viewed as a ______ as all participating nations stand to gain.
Multiple choice question.
zero-sum game
negative-sum game
positive-sum game
positive-sum game
One of the reasons the European Union was originally formed was because
Multiple choice question.
Europeans desired a lasting peace after enduring two devastating world wars.
Europeans believe that common environmental standards were needed to prevent degradation of Europe’s rivers.
the countries of Western Europe were trying to prevent excessive immigration from the communist-controlled countries of Eastern Europe.
the dominant political ideology of the countries of Western European tended toward radical Marxism at that time.
Europeans desired a lasting peace after enduring two devastating world wars.
One political reason for economic integration is the potential to minimize violent conflict between nations.
True false question.
True
False
True
What are the four main institutions responsible for determining economic policy in the EU?
Multiple select question.
European Commission
United Nations
Court of Justice
House of Lords
G20
Council of the European Union
European Parliament
European Commission
Court of Justice
Council of the European Union
European Parliament
A key impediment to economic integration is that although a majority of citizens may benefit from free trade, certain groups may lose their jobs to low-cost and low-skilled labor in other countries as was the experience of some U.S. and Canadian workers in the ______ industry following the establishment of NAFTA.
Multiple choice question.
textile
software development
banking
chemical engineering
textile
The Single European Act abolished restrictions on cabotage, which is the
Multiple choice question.
the right of an industry to sell its products at a lower cost in some markets and at a higher cost in others.
ability to use someone else’s work even though it is protected by copyright.
illegal dumping of toxic environmental waste.
right of foreign truckers to pick up and deliver goods within another member state’s borders.
right of foreign truckers to pick up and deliver goods within another member state’s borders.
Some economists argue that regional free trade agreements will provide global benefits only if
Multiple choice question.
it becomes easier to customize products.
trade creation exceeds trade diversion.
there is a homogenization of consumer tastes.
tariff barriers are removed.
trade creation exceeds trade diversion.
What committed EU members to adopt a common currency by January 1, 1999?
Multiple choice question.
Maastricht Treaty
Sullivan principles
Treaty of Lisbon
Court of Justice
Maastricht Treaty
Which two groups represent major trading blocks in Europe?
Multiple select question.
European Free Trade Association
European Union
European Commission
European Parliament
European Free Trade Association
European Union
What two political factors led to the development of the European Union?
Multiple select question.
Europe’s desire to assist its former colonies.
The devastation of western Europe during the two world wars.
Europe’s desire to hold its own on the world’s political and economic stage.
Europe’s need for a common language and culture.
The devastation of western Europe during the two world wars.
Europe’s desire to hold its own on the world’s political and economic stage
Before the United Kingdom decided to exit the EU, how many total countries were involved by 2014?
Multiple choice question.
15
28
112
43
28
The political structure responsible for economic policies in the EU consists of a single office known as the Court of Justice.
True false question.
True
False
False
After the British government formally notified of its intent to exit the European Union, the country had _____ to negotiate the terms of the exit.
Multiple choice question.
two years
six months
30 days
ten years
two years
Based on the objectives of the Single European Act, the principle of _____ states that a product standard developed in one EC country should be accepted in another.
Multiple choice question.
antidumping
mercantilism
mutual recognition
factor endowments
mutual recognition
______ is considered the most successful attempt at regional economic integration.
Multiple choice question.
ASEAN
The EU
CARICOM
NAFTA
The EU
The Maastricht Treaty committed EU members to
Multiple choice question.
assess similar tariffs on agricultural products to non-members.
enforce quotas on hormone-treated beef imports.
harmonize economic policies on overseas investment.
adopt a common currency by January 1, 1999.
adopt a common currency by January 1, 1999.
What three countries made up NAFTA?
Multiple select question.
Panama
Mexico
Canada
United States
China
Mexico
Canada
United States
Because of its economic and political influence, the _____ is considered the most significant trading bloc in Europe.
Multiple choice question.
European Parliament
European Free Trade Association
European Council
European Union
European Union
The United States-Mexico-Canada Agreement renegotiated NAFTA and requires automakers to produce Blank______ of a vehicle’s content in North America to qualify for zero tariffs.
Multiple choice question.
42.5 percent
75 percent
20.5 percent
100 percent
75 percent
What are two requirements countries must take to qualify for EU membership?
Multiple select question.
Stop deregulation of markets
Respect human rights
Increase inflation rates
Establish stable democratic government
Respect human rights
Establish stable democratic government
In 1969, which countries created the Andean Pact that was modeled on the EU, but was not as successful in achieving regional groups objectives?
Multiple choice question.
Bolivia, Chile, Colombia, Ecuador, Peru
Bolivia, Brazil, Colombia, Peru, Venezuela
Argentina, Chile, Colombia, Peru, Venezuela
Argentina, Brazil, Guyana, Paraguay, Uruguay
Bolivia, Chile, Colombia, Ecuador, Peru
During the campaign for leaving the EU, one of the recent claims said that leaving the EU would allow the British to take back control of _____.
Multiple choice question.
arbitrage
big business
religious affiliation
immigration
immigration
The trade pact developed in 1988, initially between Argentina and Brazil, is called ______.
Multiple choice question.
Mercosur
NAFTA
CAR-COM
ASEAN
Mercosur
Which agreement was an attempt at regional economic integration in the United States?
Multiple choice question.
North Atlantic Treaty Organization
Mercosur
North American Free Trade Agreement
Andean Community
North American Free Trade Agreement
Costa Rica, El Salvador, Guatemala, and other countries formed a common market in the early 1960s that was called
Multiple choice question.
Mercosur.
the Andean Community.
the Central American Common Market.
the Mayan Common Market.
the Central American Common Market.
The goal of NAFTA was to
Multiple choice question.
eliminate tariffs on trade between the nations.
eliminate monopolies in the service industry.
foster greater trade between North America and China.
establish a universal taxing body between the nations.
eliminate tariffs on trade between the nations.
Which three nations are a part of ASEAN?
Multiple select question.
Argentina
Mexico
Singapore
Brazil
Philippines
Indonesia
Singapore
Philippines
Indonesia
Which industry is most affected by stipulations of USMCA?
Multiple choice question.
Education
Oil
Automobile
Healthcare
Automobile
There are presently 19 trade blocs in Africa, and many of these blocs have been _____ for years.
Multiple choice question.
contentious
dormant
enforced
active
dormant
Under the Andean Pact, which two members received special concessions based on the size of these countries?
Multiple select question.
Bolivia
Chile
Peru
Ecuador
Colombia
Bolivia
Ecuador
The creation of a single market creates _____ costs of doing business.
Multiple choice question.
lower
higher
lower
Mercosur is a free trade pact started in 1988 by which two South American economies?
Multiple select question.
Colombia
Brazil
Peru
Argentina
Brazil
Argentina
The collapse of the Central American Common Market was a result of ______.
Multiple choice question.
the introduction of a common currency
the introduction of antidumping regulations
the acceptance of Mexico into NAFTA
war between Honduras and El Salvador
war between Honduras and El Salvador
The Association of Southeast Asian Nations was formed with the intent to foster _____.
Multiple choice question.
government involvement
local production
free trade
equalized tariffs
free trade
African countries have attempted to form a continental trade agreement, but have been stymied by significant ______ turmoil.
Multiple choice question.
social
technology
economic
political
political
The adverse consequences of unpredictable changes in exchange rates are called foreign exchange __________________
. (Enter one word in the blank.)
risks
An American tourist in Japan is interested in buying a souvenir that costs 1800 yen. How much is this in dollars if the exchange rate is $1 to Y400.
Multiple choice question.
$3.00
$45.00
$4.50
$14.50
$4.50
